INTERIM REPORT PERIOD: TO

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1 INTERIM REPORT PERIOD: TO

2 TABLE OF CONTENTS Consolidated key figures 3 Letter by the Management Board 4 GROUP MANAGEMENT REPORT Business and general conditions 5 Stable environment in the forfaiting market 6 Global economic growth slows 6 DF Group structure 7 Good basis for continuing positive development 7 Net assets, financial position and result of operations 8 Performance of the DF share 10 Risks to future development 10 Outlook 11 FINANCIAL FIGURES Consolidated Balance Sheet: Assets 13 Consolidated Balance Sheet: Equity and Liabilities 14 Consolidated Income Statement half-year comparison 15 Consolidated Income Statement quarterly comparison 16 Consolidated Statement of Recognized Income 17 Consolidated Cash Flow Statement 18 Consolidated Statement of Equity Changes 19 CORPORATE NOTES Notes to the Interim Financial Statements 20 Review Report 27 Responsibility Statement by the Management Board 28

3 CONSOLIDATED KEY FIGURES Change in EUR million (unless otherwise noted) Q1 Q2 Mid-Year Mid-Year Mid-Year Forfaiting volume % Gross result including financial results % Forfaiting margin including financial results 1.7% 2.3% 1.9% 1.9% 0% Administrative costs % Earnings before income taxes % Consolidated profit % Earnings per share in EUR % Variations in the sums or percentage figures result from rounding Forfaiting volume (in EUR Mio.) Gross result incl. financial results (in EUR Mio.) Consolidated profit (in EUR Mio.) O H H H H H H

4 LETTER BY THE MANAGEMENT BOARD Dear Shareholders and Business Partners. On the one hand some sectors are booming and experiencing a surge in activity. On the other hand, we are seeing volatility on the capital markets, creditworthiness downgrades and slowing economic growth. Anyone who has been following the daily statements of leading economic experts in German business papers can only be certain of one thing when it comes to the international economy s performance: Nothing is certain. From our point of view at DF Deutsche Forfait Group, developments remained stable and unaffected by the above mentioned adverse factors in the market for export retail financing in the first half-year of The measures we implemented in the second half of 2010 to improve our operations and the creation of an in-house supervisory team for secondary markets have all started to bear fruit. Our company was able to increase its forfaiting volume in the first six months by 7% to EUR million. The gross profits, including financial results, underlying our operative success rose 10% to EUR 6.9 million, which resulted in EUR 1.4 million in profits for the half-year. However, despite general sluggishness in the second half-year of 2011, the world s economy is continuing to grow. This means that DF Group can look forward to many promising opportunities on the forfaiting market, in particular with regard to our focus on business with emerging and developing countries. If another serious crisis on the financial markets can be avoided, we assume that 2011 will, overall, be a year with a positive balance and one which will see a substantial improvement in results and volumes. Jochen Franke Marina Attawar Ulrich Wippermann 4

5 MID-YEAR 2011 GROUP MANAGEMENT INTERIM REPORT DF Group s positive development continued to strengthen in the second quarter. Consolidated profit amounted to EUR 0.7 million and again was up against the previous quarter. This is the best result since the first quarter of 2010, although under completely different market conditions. The first quarter of 2010 was still based on the extraordinary crisis market conditions. The result for the first half of the year is at EUR 1.4 million, down only slightly on the previous year s figure as a result of ongoing positive earnings development. The sales measures implemented last year have paid off and played a significant role in this positive trend. The gross result including financial results, the key performance figure for success in the forfaiting business, rose by 10% year-on-year to EUR 6.9 million. The forfaiting volume increased by 7% to EUR million and the margin remained on par with the first half of 2010 at 1.9%. This development shows that the measures taken by DF Group are well suited to successfully make use of the current market conditions. The company s positioning is a good basis for continuing successful development. Business and general conditions Forfaiting is a standard trade financing instrument. It is mainly used in transactions with emerging markets and developing countries where exporters frequently have to extend payment terms to their customers. Extended payment terms are important to exporters for securing orders in the competitive international market. With such transactions, the receivables and associated risks always remain on the exporter s balance sheet and reduce their liquidity. Forfaiting means that the exporter sells these receivables without recourse to the forfaiting company. The sale of receivables allows the exporter to transfer country and counterparty risks to the buyer while increasing liquidity. In addition, the exporter improves its balance sheet structure which represents an advantage when dealing with refinancing banks. In addition to forfaiting, DF Group offers its customers the assumption of risks via purchase commitments. Unlike forfaiting, purchase commitments only involve the assumption of country and counterparty risks without providing liquidity. Lease and loan receivables are also purchased and are usually sold or hedged by purchase commitments, for instance. In these times of rapid globalization and the increasing share of the emerging markets in world trade, forfaiting is becoming a more and more significant trade financing instrument. In addition, banks are issuing fewer loans to SMEs than prior to the 2008/2009 financial crisis, which drives up demand for forfaiting. The outplacement of risks and reselling of receivables are key success factors for DF Group. Purchase commitments are secured by bank guarantees, third-party counter-guarantees or credit insurance for the benefit of DF Group, which means the risks are outplaced. Receivables that are not sold are added to the DF Group s portfolio. Just as it does on the acquisition side, DF Group also has a global network of investors for the sale of receivables which was developed gradually over the last few years and reinforced by numerous business deals. The far-reaching changes in the market over the past two years also fundamentally changed the customer structure on the purchasing and placement sides. Business partners left, had to considerably reduce their business volumes or stopped buying receivables. This is why the customer base has changed and new customers have been won. Typical buyers of receivables include forfaiting companies that unlike DF Group also act as investors, smaller regional banks, large banks headquartered in industrial countries, and banks with shareholders from the emerging markets (so-called foreign banks). Since the beginning of 2009, demand has been steadily increasing and has now reached an acceptable level again. Many market participants have returned. Investors are looking for transactions again that have an attractive return/risk profile on account of low interest rates. 5

6 MID-YEAR 2011 GROUP MANAGEMENT INTERIM REPORT In principle, receivables are acquired for the following reasons: Foreign trade receivables have an attractive margin Forfaiting margin of the DF-Gruppe in % 3.0 compared to their risks. The yield is usually higher compared to an equivalent fixed-interest security and the risk is lower as they are purchased abroad. Numerous investors have very limited sales capacities and therefore restricted market access. These investors use the services of DF Group to expand their sales capacities. Investors purchase DF Group receivables to diversify their portfolios while benefiting from the company s international network and access to various local markets Margin 1,7% H1 11 In the forfaiting business, receivables are acquired at a discount Source: DF Deutsche Forfait AG from the nominal value. This market value reduction is calculated on the basis of the money and capital market interest rate for the equivalent term (e.g. 1-year LIBOR) plus risk margin. The margin takes the individual risk of each transaction into account; this mainly depends on country and counterparty risks. In addition, the margin is affected by the complexity of the transaction including the documentation. For DF Group, forfaiting income represents the most important income component. The company also generates income from commitment fees and other commissions. Stable environment in the forfaiting market started primarily in the second half of Margins have fallen again since 2009, although they continue to be high from a long-term perspective. DF Group awaited this trend. Extraordinary market conditions in crisis year 2009 resulted in extremely high margins. During this time, the decisive factor for concluding a business was the ability to complete the transaction, not the price for the business. Margins have adjusted with the markets recovery and the associated rise in competition. The transaction s price or the margin has again been a decisive selection criterion since last year. Following the dramatic changes in the financial markets, the situation on the forfaiting market as well as export financing stabilized considerably and have now reached an acceptable level again. This was not even changed by current turbulence on the stock and currency markets. More funding partners are now available to exporters again. Market participants have returned; new ones have appeared and several participants are pursuing a growth strategy once again. Investor demand for forfaiting transactions and the supply of credit to companies have improved significantly. Business risks and transactions with terms over several years can be placed again. This development Global economic growth slows As forecast by the International Monetary Fund (IMF) in April 2011, the global economy grew by 4.3% in the first quarter of This is also in line with the IMF s growth forecast for the whole of However, the IMF experts do not expect the excellent developments seen in the first quarter to be repeated in the second quarter. Growth in the emerging countries and developing markets remains high; however the industrial countries continue to be plagued by the effects of the 6

7 MID-YEAR 2011 GROUP MANAGEMENT INTERIM REPORT Year-on-year GDP growth in % e 2012e 2012e Developing/Emerging Markets Source: World Bank, June 2011 Industrialized Countries 2008/2009 financial crisis. This is reflected in high debt levels in European countries and the United States, coupled with a recovery slow-down in recent months. According to initial estimates by the Federal Office of Statistics (Statistisches Bundesamt), Germany hardly experienced any growth in the second quarter (+0.1%), with the same applying to the eurozone as a whole. The economy of Germany s key trading partner France stagnated, while the United States saw moderate growth of some 0.3% between April and June The extension of the debt crisis in the industrial countries coupled with a simultaneous growth slow-down in key emerging countries such as China, India or Brazil are the greatest risk factors for the global recovery. The World Bank currently expects average growth of 6.3% in 2011 for emerging and developing countries, with the same being predicted for 2012 and DF Group structure DF Deutsche Forfait Group is based in Cologne, where its forfaiting know-how is concentrated and transactions are structured. Sales are handled by own offices or intermediaries with direct access to various local markets. Headquarters coordinates the offices around the world and is furthermore in charge of risk management, contract management and the outplacement of transactions. In addition to the parent company in Cologne, the DF Group also includes four wholly owned subsidiaries in Brazil (São Paulo), Switzerland (Zurich), the Czech Republic (Prague), the USA (Miami) as well as a 60% interest in both DF Deutsche Forfait AG Pakistan Ltd. located in Lahore, Pakistan and DF Deutsche Forfait AG West Africa Limited based in Accra, Ghana. The international network is supplemented by representative offices in Finland (Helsinki), France (Paris) and Great Britain (London) as well as cooperation partners in Egypt (Cairo) and Dubai. With the exception of the subsidiaries in Prague and Zurich, which are occasionally involved in back office tasks for individual transactions, the foreign offices focus exclusively on marketing and sales activities. Due to its regional presence, DF Group has direct access to clients in the respective local markets. Since the offices concentrate on sales activities, markets can be developed comparatively quickly and in a cost effective manner. Overall, DF Group has an efficient and cost effective organizational structure. According to international bank HSBC, global trade reached its provisional climax in the first quarter of This was indicated by a slow-down of export demand in both the industrial countries and the key emerging countries in the second quarter of However, the IMF s global trade forecast was increased slightly from 7.4% to 8.2% in June against expectations in April. According to the IMF, the global trade volume rose by 12.4% in Good basis for continuing positive development DF Group reacted to last year s market changes by improving its sales structure. Their successful implementation illustrates DF Group s current economic development. Quarterly results have improved continuously. Pricing has again become important following the normalization of forfaiting market 7

8 MID-YEAR 2011 GROUP MANAGEMENT INTERIM REPORT conditions. On the placement side, investor demand has increased significantly since last year. Despite this, placement is still considerably more demanding than during times of high financial market liquidity prior to the start of the crisis in More investments were made in order to look after investors, particularly those from the secondary customer segment. For this purpose, DF Group has established its own sales unit for this target customer group. Detailed knowledge about buyers needs has a positive impact on the purchasing side, as this speeds up the calculation of receivable purchase prices. DF Group has a highly qualified and versatile team whose core employees have been working together successfully since the 1990s. The company s current personnel structure leaves considerable scope for further growth and together with the other success factors provides the basis for long-term, positive business development. Net assets, financial position and result of operations A new second management level was established to better manage and look after sales units. In recent years, sales have increased significantly, mainly as a result of new locations. This growth was accommodated by expanding management. Office management was improved. The marketing of regional sales units was again expanded and the target agreement system was adjusted accordingly. In addition, a trading information system, in which current business transactions and requests are permanently recorded, was implemented for all sales employees. Operational improvements and attractive market opportunities provide for good conditions for further DF Group growth in the long term. The company s business model is clearly defined and has proven itself during the crisis. The sophisticated risk management system is a fundamental part of the business model. It is based on the outsourcing of risks and reselling of receivables. Thanks to the efficient organizational and cost structure with large headquarters in Cologne and streamlined local sales offices, DF Group is able to react quickly to changes in the market. New markets can be tapped quickly and at low cost. The company has sufficient resources with a comfortable capacity for growth. The IPO and profit retention has led to a significant increase in equity. Management calculates that the equity base is sufficient for a considerably higher forfaiting volume, way above the previous maximum of EUR million, which was generated prior to the IPO. DF Group s positive development continued in the second quarter. The results developed well this year following a downturn in quarterly results last year. Quarterly results increased by 14% compared to the first quarter of the year to EUR 0.7 million. This is the best result since the second quarter of 2010, and is even up 48% on the second quarter of However, the result for the first half of the year at EUR 1.4 million is still down EUR 0.2 million on the figure for the first half of last year. This is due to the very good result of EUR 1.1 million in the first quarter of 2010, which was however achieved under completely different market conditions. The first quarter of 2010 was still shaped by the extraordinary crisis market conditions. The gross result including financial results is the key performance figure for success in the forfaiting business. It is derived from the forfaiting volume and hence the resulting forfaiting margin. This figure also includes the financial result from interest paid and interest income since this is directly related to the forfaiting business. Receivables are refinanced for the period between the payout of the purchase price and the collection of the selling price or payment of the receivable. Interest is paid to refinance the receivables during this period. The corresponding income figure is the forfaiting income included in the gross result. The gross result including financial results rose by 10% year-onyear to EUR 6.9 million. The forfaiting volume increased by 7% and the forfaiting margin was up 1.9% on the previous year. 8

9 MID-YEAR 2011 GROUP MANAGEMENT INTERIM REPORT The forfaiting volume was also distributed between many countries in the period under review. of the year. As a result, the effect of the growth in balance that occurs during the course of the year, which will then decline again by the end of the year, was low on the balance sheet Breakdown of the forfaiting volume by region in the period January to June 2011 date. This is manifested in trade receivables, by far the largest item on the asset side, which only rose by EUR 3.7 million to EUR million. In terms of nominal value, receivables from forfaiting transactions on 30 June 2011 are secured at 86%. Others 34% 18% Iran This includes irrevocable commitments to purchase receivables, in certain case cash securities, as well as collateral from bank Switzerland Kazakhstan 5% 5% 5% India EUR million forfaiting volume China 6% 6% Slovakia 10% 11% Brasil United Arab Emirates guarantees and credit insurance. At EUR 30.4 million, cash and cash equivalents were even up on the very high figure of EUR 27.9 million at the end of the year. As at the end of the year, DF Group reported cash inflow of EUR 8.3 million shortly before the reporting date, which was to be transferred and has since been paid out. Payments from the selling of receivables were also received just prior to the reporting date so that the The highest proportion again pertained to Iran at 18%, although this is down on both the figure for the previous year (22%) and for the first quarter (21%). In the Iran business, DF Group mostly processes transactions, meaning that at the time the purchase has been agreed, a buyer has already made a purchase commitment to DF Group. The United Arab Emirates make up 11%, on par with the previous year s figure of 10%. Brazil s figure at 10% was clearly up on the previous year s value of 1%. Brazil is followed by a number of countries with smaller proportions, including the fast-growing emerging countries China and India. This illustrates DF Group s broad diversification. corresponding loans were only redeemed after the reporting date. Some cash and cash equivalents were denominated in Euros and could not be used to pay off short-term liabilities to banks in US dollars, which are mainly used to refinance transactions in the same currency. On the liabilities side, higher trade payables reduced current liabilities to banks. The equity ratio at 22% is on par with that at the end of last year (23%). The very high cash and cash equivalents as well as the extensive underlying of receivables must be taken into account when assessing the equity situation. Administrative costs rose by EUR 0.7 million to EUR 5.0 million. This was due to the expansion of capacity, such as by establishing an office in Ghana in the second half of 2010, as well as a one-off effect. Other operating expenses are relatively high compared to staff costs, because the cost of staff in London and the unconsolidated subsidiaries are fully recognized under this position for contractual reasons. The balance sheet total on 30 June 2011 amounted to EUR million, only up EUR 6.1 million on the figure at the end The cash flow was clearly positive at EUR 11.2 million as a result of the significant EUR 12.1 million increase in trade payables. The rise in liabilities is due to the above-mentioned payments made shortly before the reporting date, which were to be transferred and were only paid out in the third quarter. Financial liabilities were down year-on-year as a result of the low balance that occurs during the course of the year, resulting in cash outflow from financing activities. As a consequence of cash inflows, cash and cash equivalents amounted to EUR 30.4 million, significantly more than in the previous year. 9

10 MID-YEAR 2011 GROUP MANAGEMENT INTERIM REPORT Performance of the DF share The performance of DF Deutsche Forfait AG s share was weaker than the overall market and the industry in the first half of The security closed at EUR 4.87 on 30 June, down 18% on the beginning of The share underperformed in the first quarter after weaker than expected 2010 annual results. The DF share initially recovered in the second quarter and tended almost constantly above the EUR 5.25 mark in April and May. The share dropped from mid-june as a result of significantly lower trading volumes. The stock index for small caps, SDAX, rose slightly in the first six months and closed the first half of the year up 3%. The industry index for financial stocks, the DAXsector Financial Services, showed a similar trend and also picked up by just shy of 3% since the start of the year. DF share compared to relevant indices Index figures months, a total of 681,034 DF shares were traded on all German stock markets. This results in a daily order volume of 5,362 shares. An average of 10,113 DF shares was traded per day in the comparable period last year. Risks to future development A detailed risk report can be found in the Group Management Report for the 2010 financial year. No acute risks beyond those specified in said report have currently been identified. Generally, the most significant risks for the forfaiting business are as follows. Legal risk DF Group buys receivables which are normally resold. In such transactions, DF Group usually guarantees to the buyer that the receivable exists (liability for legal validity), that it is the owner of the receivable (ownership), and that the receivable can be collected from the debtor, e.g. that there are no exceptions or objections. In principle, there is a risk that the receivable does not exist or is not enforceable, especially since the seller is normally liable in case of resale. This situation could result from the improper verification of documents or deficiencies in the contract DFAG SDAX DAXsector Financial Services Source: Deutsche Börse (Xetra rates) A total of approximately 279,500 DF shares were traded during the second quarter. This corresponds to an average daily trading volume of 4,436 shares. This is less than in the first quarter (average daily volume of 6,274 shares). Based on the first six DF Group concludes credit insurance to improve the risk from a receivable; furthermore, it acquires receivables that have already been insured. Such credit insurance agreements must be precisely tailored to the transaction being covered. Otherwise, there is a risk that credit insurance terms and conditions may be violated and that no credit insurance can be drawn on in the case of a loss. This also applies to counterguarantees, which DF Group enters into in order to secure purchase commitments and receivables. This risk remains after sale in certain constellations, as the receivables are resold with credit insurance coverage or counter-guarantees. For example, when DF Group sells a receivable with credit insurance, it is usually liable to ensure that such credit insurance actually exists at the time of sale. 10

11 MID-YEAR 2011 GROUP MANAGEMENT INTERIM REPORT This risk is countered by having a well-trained and generously staffed contract management department. Workflows are regulated by detailed work instructions and checked by applying the principle of dual control. If necessary, the legal office or external legal firms are consulted. Country and counterparty risk During a national crisis, debtors may be prevented from paying receivables as they come due. Payments cannot be transferred due to government restrictions (transfer risks) or converted into different currencies (conversion risk). Counterparty risk refers to the risk that a debtor could default on account of insolvency or for another reason; the provider of a guarantee (e.g. a bank or credit insurance company) may also default. As a result of the global 2008/2009 financial crisis, countries and companies have less financing options, resulting in higher country and counterparty risk. Furthermore, current developments on the currency markets could cause a new major financial crisis, which could have a negative influence on this risk. These have impacted DF Group, as they have the entire financial industry. The majority of these delinquencies are covered with securities. Unsecured items are covered by a commensurate risk provision. The taking of country and counterparty risks is regulated accurately by a competence arrangement and a limit system. DF Group normally reduces these risks by placing receivables quickly. Sales transactions transfer country and counterparty risks to the buyer. Refinancing risk In order to process the desired forfaiting volume, DF Group requires refinancing capacities for the period between the purchase and resale or repayment of receivables to fund its trade in receivables. Equity and especially refinancing lines of credit from banks are used for this purpose. DF Group significantly increased its equity as a result of the IPO and profit retention and therefore considerably improved the risk of DF Group for refinancing banks. There is a risk that these lines of credit could be reduced due to cancellation by the banks or that all lines of credit could be terminated. This risk has increased as a result of the financial crisis. DF Group has lines of credit with numerous banks. DF Group has established a long-term trusting relationship with banks through regular, open communication and informative reporting. In addition, DF Group has a long-term loan of more than EUR 10.0 million available. Earnings risk In an extreme scenario, this could mean that receivables can no longer be sold to investors. Selling receivables proved to be extremely difficult at the height of the financial crisis in the fourth quarter of Since that time, the market has returned to normal. As a result of the financial market crisis, the percentage of recurring transaction has decreased significantly; the customer base has to be expanded more than average to offset this effect. Exporters bought receivables from recurring deliveries and resold them to a certain investor group. This problem could reoccur if a new major financial crisis were to take place. The business model of DF Group has proven itself even in the crisis. The risk management system withstood the crisis. As a result of the crisis, there has been an increase in cases where business partners are not complying with their contracts, meaning that legal action has to be taken. The current developments on the currency markets could cause another major financial crisis, which could significantly worsen the risk situation. Outlook Despite a slow-down in global economic growth, the situation for the forfaiting business remains positive. In 2011 and 2012, economic growth of 2.2% and 2.7% respectively for industrial countries as well as 6.3% and 6.2% respectively for emerging countries and developing markets is expected. The current 11

12 MID-YEAR 2011 GROUP MANAGEMENT INTERIM REPORT turbulence on the currency markets, especially for the US dollar and the euro, could cause another major financial crisis, which could even result in a severe recession as well as an increased need for impairments, even at DF Group. Governments have continuously implemented stabilization measures to counter such a crisis. DF Group expects that increased uncertainty regarding global economic development will continue for some years to come. There is a continuing good general outlook for the forfaiting market, which remains unchanged even given current developments on the share and currency markets. Exporters demand for forfaiting continues. On the other hand, investor demand has increased again; receivables with terms over several years can be placed again. The margin remained at an above-average level when looking at it in the long term, even though pricing has again become a key new business selection criteria. The proven business model and the DF Group s good positioning with sales improvement measures provide a good foundation for long-term, positive business development. This goes hand in hand with a continuously rising forfaiting volume and a growing gross result including financial results, which will also push up consolidated profit. Cologne, August 2011 Board of Management 12

13 CONSOLIDATED BALANCE SHEET Assets in EUR in EUR A. Long-term assets I. Intangible assets 16, , II. Tangible assets 429, , III. Financial assets Investments in affiliated companies 51, , IV. Other long-term assets 33, , V. Deferred taxes 43, , , , B. Short-term assets I. Trade accounts and other receivables (9) 102,923, ,227, II. Tax receivables 1,299, ,480, III. Other short-term assets 364, , IV. Liquid funds (10) 30,379, ,864, ,966, ,848, Total assets 135,542, ,464, (#) reference to corporate notes 13

14 CONSOLIDATED BALANCE SHEET Equity and liabilities in EUR in EUR A. Equity (11) I. Subscribed capital 6,800, ,800, II. Capital reserve 11,286, ,286, III. Revenue reserves 1. Statutory reserves 500, , Other reserves 9,316, ,262, IV. Adjustment item from the currency conversion 388, , V. Consolidated profit 1,373, ,074, ,664, ,149, B. Long-term liabilities 1. Liabilities to banks 9,828, ,875, Other long-term liabilities 4, , ,832, ,879, C. Short-term liabilities 1. Liabilities to banks (12) 57,768, ,572, Short-term provisions 128, , Tax liabilities 4, , Trade accounts and other payables 36,654, ,545, Other short-term liabilities 1,488, ,184, ,044, ,435, Total equity and liabilities 135,542, ,464, (#) reference to corporate notes 14

15 CONSOLIDATED INCOME STATEMENT HALF-YEAR COMPARISON to to in EUR in EUR 1. Typical forfaiting income (4) a) Forfaiting income 5,209, ,781, b) Commission income 4,670, ,242, c) Income from additional interest charged 855, , d) Exchange profits 6,567, ,195, e) Income from the reduction of value adjustments on receivables and from the writing back of provisions for forfaiting and purchase commitments ,303, ,610, Typical forfaiting expenditure (5) a) Expenditure from forfaiting , b) Commissions paid 2,521, ,939, c) Exchange losses 6,624, ,157, d) Credit insurance premiums , e) Depreciation and value adjustments on receivables as well as additions to provisions for forfaiting and purchase commitments 225, , ,371, ,438, Gross result (6) 7,932, ,171, Other operating income 26, , Personnel expenses a) Wages and salaries 1,547, ,383, b) Social security contributions and expenditure for pensions and social welfare 228, , Depreciation on tangible and intangible assets 69, , Other operating expenditure (7) 3,120, ,555, Interest income 39, , Interest paid 1,051, , Profit before income tax 1,981, ,120, Income tax a) Income and earnings tax 608, , b) Deferred taxes , Consolidated profit 1,373, ,560, Average number of shares 6,800,000 6,800,000 Earnings per share (#) reference to corporate notes 15

16 CONSOLIDATED INCOME STATEMENT QUARTERLY COMPARISON to to in EUR in EUR 1. Typical forfaiting income a) Forfaiting income 2,818, ,382, b) Commission income 2,099, ,666, c) Income from additional interest charged 418, , d) Exchange profits 1,548, ,600, e) Income from the reduction of value adjustments on receivables and from the writing back of provisions for forfaiting and purchase commitments ,884, ,794, Typical forfaiting expenditure a) Expenditure from forfaiting b) Commissions paid 1,067, , c) Exchange losses 1,590, ,581, d) Credit insurance premiums , e) Depreciation and value adjustments on receivables as well as additions to provisions for forfaiting and purchase commitments 75, , ,732, ,426, Gross result 4,152, ,367, Other operating income 14, , Personnel expenses a) Wages and salaries 799, , b) Social security contributions and expenditure for pensions and social welfare 117, , Depreciation on tangible and intangible assets 34, , Other operating expenditure 1,676, ,290, Interest income 9, , Interest paid 460, , Profit before income tax 1,086, , Income tax a) Income and earnings tax 355, , b) Deferred taxes Consolidated profit 731, , Average number of shares 6,800,000 6,800,000 Earnings per share

17 CONSOLIDATED STATEMENT OF RECOGNIZED INCOME to in EUR I. Consolidated income 1,373, ,560, II. Other income Currency translation differences from the inclusion of foreign subsidiaries 161, , III. Recognized income 1,534, ,695,

18 CONSOLIDATED CASH FLOW STATEMENT to to in keur in keur Cash flow Consolidated profit 1,373 1,561 + Depreciation on tangible and intangible assets Expenses for income tax Interest paid 1, Interest income /- Result from disposal of long-term assets 0 0 +/- Other transactions not affecting payments /- Change to trade accounts receivable -3,696-28,272 +/- Change to other assets (working capital) /- Change to provisions 0 0 +/- Change to trade accounts payable 12,110-1,000 +/- Change to other liabilities (working capital) 304-1,009 - Paid taxes on profits ,146 = Operative Cash flow 11,199-28,376 - Paid interest Retained interest 38 9 = Inflow/Outflow f from current business (Total 1) 10,250-29,201 - Payments for investments in long-term assets Incoming payments from disposals of long-term assets 0 0 = Outflow from investment activity (Total 2) /- Change to short-term financial liabilities -6,850 33,401 - Payment of dividends -1,020-1,768 - Incoming payments from capital market transactions 0 0 = Outflow /Inflow from finance activity (Total 3) -7,870 31,633 Change in financial resources affecting payments 2,355 2,431 + Liquid funds at the start of the period 27,864 12,360 +/- Effects from the currency conversion = Liquid funds at the end of the period 30,379 14,920 18

19 CONSOLIDATED STATEMENT OF EQUITY CHANGES Consolidated Statement of Equity Changes in the period to in EUR Difference Subscribed Capital Statutory Revenue from currency capital reserves reserves reserves conversion Total Balance ,800, ,286, , ,336, , ,149, Profit appropriation Consolidated profit 1,373, ,373, Currency conversion 161, , Dividend payment (1,020,000.00) (1,020,000.00) Capital increase Allocation to the reserves Balance ,800, ,286, , ,689, , ,664, Consolidated Statement of Equity Changes in the period to in EUR Difference Subscribed Capital Statutory Revenue from currency capital reserves reserves reserves conversion Total Balance ,800, ,286, , ,030, (25,516.00) 28,590, Profit appropriation Consolidated profit 1,560, ,560, Currency conversion 134, , Dividend payment (1,768,000.00) (1,768,000.00) Capital increase Allocation to the reserves Balance ,800, ,286, , ,823, , ,518,

20 NOTES TO THE INTERIM FINANCIAL STATEMENTS (1) General information The condensed interim consolidated financial statements were prepared in accordance with the regulations of IAS 34 ( Interim Financial Reporting ); they are not as detailed as the consolidated financial statements published on 31 December The consolidated interim financial statements dated 30 June 2011 follow the same accounting and valuation methods as the consolidated financial statements for the financial year They are consistent with the International Financial Reporting standards ( IFRS ), as applicable in the European Union within the framework of European law. They have been audited and, in the opinion of the Board of Management, fairly represent the company s assets, financial and income situation. The functional currency of the Group is the Euro. All figures are presented in thousands of Euros (keur) unless otherwise stated. The legal form of DF Deutsche Forfait AG is an Aktiengesellschaft. The registered office of the company, as stated in the Memorandum of Association, is Cologne, Germany. The company s address is Kattenbug 18 24, Cologne. It is registered at Cologne Local Court (Amtsgericht) under HRB DF Deutsche Forfait AG is a forfaiting company and, as such, is a financial enterprise within the definition of Section 1 (3) No. 2 KWG (German Banking Act). In principle, the consolidated income statement is prepared according to the total expenditure method. Income and expenses are grouped by category and income and expense totals are presented to take the particular characteristics of a forfaiting company into consideration. The consolidated financial statements follow the structure guidelines set out in IAS 1. (2) Basis of consolidation The interim consolidated financial statements include the subsidiaries DF Deutsche Forfait s.r.o., Prague/Czech Republic, and DF Deutsche Forfait Swiss AG, Zurich/ Switzerland. As subsidiaries used exclusively for business development, DF Deutsche Forfait Americas, Inc., Miami/ USA, DF Deutsche Forfait do Brasil Ltda, São Paulo/ Brazil, DF Deutsche Forfait Pakistan (Private) Limited, Lahore/ Pakistan and Deutsche Forfait West Africa Limited, Accra/ Ghana are not included in the interim consolidated financial statements. For the interim consolidated financial statements dated 30 June 2011, which communicate a true and fair view of the asset, financial and income situation of the Group, the non-consolidated subsidiaries are of minor importance. (3) Currency translation The interim financial statements of consolidated companies presented in a foreign currency are translated on the basis of functional currency (IAS 21, The Effects of Changes in Foreign Exchange Rates ) using the modified closing rate procedure. The functional currency of the subsidiaries is essentially identical to the company s local currency. Therefore, in the interim consolidated financial statements, the income and expenses from the financial statements of subsidiaries, which are prepared in a foreign currency, are translated at the annual average rate; assets and liabilities are translated at the closing rate. The exchange rates on which translation into Euros is based correspond to the Euro reference rates published by the European Central Bank and are as follows: Closing rate Average rate to to Swiss Franc Czech Koruna